Grass-fed gaining traction in Vietnam


As Fonterra focuses on growing our business in South East Asia, customers are starting to see the value in its grass-fed claims.

In Vietnam, one customer, Nutifood, has just released a 100% New Zealand Grass-Fed milk, the first of its kind in the country.

Nutifood makes products including formulas, ready-to-drink milks and yoghurts that help with urgent nutritional needs and the physical development of the Vietnamese population.

Mr. Vo Hoang Anh, Vice President Marketing at Nutifood, says consumers in Vietnam are becoming more interested in foods that are natural and of a high quality – and what is more natural than grass-fed milk from New Zealand?

Customers see the value in milk being grass-fed and the New Zealand name

Mr. Vo Hoang Anh, Vice President Marketing, Nutifood

“Vietnamese consumers are aware of the benefits of grass-fed milk, meaning Fonterra’s sustainability claims and provenance story has provided a key point of difference.”

In Vietnam, dairy products make up 10% of the average total food cost, so while already a popular part of the everyday diet, the majority of dairy is imported. By leveraging Fonterra’s provenance story claims, Nutifood can differentiate themselves in the competitive market.

“The New Zealand origin has become a trustworthy signal in the eye of consumers – it indicates a healthy, nutritious and premium dairy product.” says Mr. Vo Hoang Anh.

Sustainability claims are expected to drive sales in the coming years and by getting ahead of this, Nutifood can become a main player in this story.

“Customers see the value in milk being grass-fed and the New Zealand name” says Mr. Vo Hoang Anh.

New Zealand is the perfect place to grow grass – the combination of climate and nutrient rich soils make the ideal conditions for pasture-fed dairy farming.

Cows are 96% grass-fed and spend over 350 days a year on grass, which is more than anywhere else in the world. This is important for producing high quality and nutritious milk.

You can see from this branding alone how important our provenance story is to the consumer. It just goes to show the unique value of the New Zealand name.